Summary A federal jury convicted Brent Kovar on 15 fraud and money-laundering counts involving $24 million collected from at least 400 investors. Profit Connect promised annual returns reachi
Las Vegas businessman Brent C. Kovar defrauded at least 400 investors through false claims about his cryptocurrency company, Profit Connect. A federal jury convicted Kovar of taking approximately $24 million from investors who believed they were funding a profitable technology operation.
Jurors found him guilty of 11 wire fraud counts, two mail fraud counts, and two money laundering counts. According to the U.S. Attorney’s Office for Nevada, Profit Connect operated from late 2017 until July 2021.
Kovar owned the Las Vegas company and promoted it as an advanced cryptocurrency mining and transaction verification business. He claimed Profit Connect used artificial intelligence software running on a supercomputer to generate consistent cryptocurrency profits.
Moreover, Kovar promised investors fixed annual returns ranging from 15% to 30%, regardless of broader market performance. He also offered a complete money-back guarantee, giving prospective investors greater confidence in the company’s advertised investment program.
Additionally, Kovar claimed Profit Connect held cryptocurrency reserves worth hundreds of millions of dollars. He falsely told investors that the Federal Deposit Insurance Corporation insured their investments against potential financial losses. These claims presented Profit Connect as a secure and profitable business supported by valuable digital assets and advanced technology.
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Federal prosecutors established that Profit Connect generated insufficient revenue and lacked the cryptocurrency reserves Kovar described to investors. Consequently, the business could neither provide the promised returns nor repay investors under its advertised money-back guarantee.
Prosecutors identified the operation as a Ponzi scheme that depended on deception rather than profitable cryptocurrency activities. Kovar used claims involving artificial intelligence and digital assets to attract people interested in emerging financial technology.
However, the company’s actual financial position remained far weaker than the information presented through its promotional materials. Investors provided millions of dollars while believing the business possessed the resources needed to support its financial commitments.
FBI investigators worked with the U.S. Attorney’s Office for Nevada to examine Profit Connect’s operations and associated financial transactions. Christopher S. Delzotto, who leads the FBI’s Las Vegas Field Office, addressed the deception surrounding the investment opportunity.
He explained that victims believed they were participating in technological advancement, although Kovar had built the operation through false representations. Significantly, the verdict covers electronic communications, mailed investment materials, and financial transactions involving proceeds from the fraudulent scheme.
Kovar faces a combined statutory maximum sentence of 280 years in federal prison across the 15 criminal convictions. Nevertheless, the maximum penalty does not determine his actual punishment because the judge will consider federal guidelines and individual circumstances.
The court scheduled sentencing for November 30, when a federal judge will determine imprisonment, restitution, and other possible penalties. The jury’s verdict resolves the trial phase while leaving the financial recovery process and final punishment for further court proceedings.
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